Gas storage levies ‘threaten internal market’: FGW

A German gas storage levy and a similar proposed measure in Italy "endanger security of supply and threaten the internal market", Austrian gas and heat suppliers association FGW said today.

Germany began imposing fees on all gas exiting the German grid in October 2022, and most recently set the levy at €1.86/MWh for January-June. Italian energy regulator Arera last month proposed a similar measure, which could be introduced from April at €2.19/MWh.

But the German levy runs "contrary to EU law", FGW managing director Michael Mock said, citing a report by a German law firm. The report alleges that the charges violate article 28 of the Treaty on the Functioning of the European Union. "The European Commission, which has so far done little about the gas export levy, must also be aware of this," he said.

Italy introducing a similar measure would also affect Austria's security of supply, efforts to diversify away from Russian gas and the competitiveness of Austrian companies, Mock said.

FGW called on Austrian politicians to oppose Germany's levy and the planned Italian levy. "These national measures would reduce the solidarity provisions of the European security of supply regulation to absurdity," Mock said.

Asked about unconfirmed reports that the commission had asked EU energy regulators' agency Acer to investigate the levy, Acer told Argus that "scrutiny of the legal merits of this case" lies outside its remit. But Acer "is discussing with regulators to set up more co-ordinated approaches between member states to recover costs whilst on the other hand avoiding risks to fragment our integrated market".

AGGM criticises levy

Austrian area market manager AGGM also criticised the German and proposed Italian levies at an event in Vienna this morning.

Germany's storage levy makes cross-border trade more difficult, contradicts European principles of solidarity and places an "unjustified" financial burden on Austrian suppliers and customers by making imports from Germany "significantly more expensive", AGGM said

"Neither short-term trading nor long-term commitments for gas deliveries from Germany may develop in this situation," AGGM executive board member Bernhard Painz told Argusin an interview earlier this month.

AGGM has submitted a complaint to the commission about this measure, and is similarly concerned by the proposed levy in Italy.

The levies could also will make EU gas flows less efficient and "hinder effective competition", the executive director of Austrian regulator E-Control Alfons Haber also told Argusin a separate interview.

By Brendan A'Hearn

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